The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve and the Swiss National Bank are announcing this Sunday, 19, a coordinated action to increase liquidity through permanent credit swap line agreements. liquidity in dollars.
To improve the effectiveness of swap lines in providing US dollar funding, central banks that currently offer US dollar operations have agreed to increase the frequency of operations with a 7-day maturity from weekly to daily.
These Daily operations will begin this Monday, the 20th, and will continue at least until the end of April. This helps to mitigate the effects of the tension in global markets on the supply of credit to families and companies.
Swiss bank supports purchase of Credit Suisse by UBS
The announcement comes in the wake of the agreement designed by the Swiss government for UBS to buy its competitor Credit Suisse, in liquidity crisis. According to the Minister of Finance of Switzerland, Karin Keller-Sutter, the deal is “a guarantee to allow it to have liquidity”.
US Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell praised the Swiss authorities’ announcements to support financial stability.
